ARTIS AND RFA CAPITAL COMPLETE ARRANGEMENT TRANSACTION

Executive Summary
- Artis Real Estate Investment Trust (“Artis”) and RFA Financial Inc. have completed their combination under a statutory plan of arrangement, with RFA acquiring 100% of Artis’s common units and preferred units.
- The transaction creates a scaled Canadian financial‑services platform that includes a Schedule I bank, mortgage origination/servicing businesses, and a diversified commercial real‑estate portfolio, expected to deliver stable earnings and a sustainable dividend profile.
- Post‑closing, RFA will list new securities on the TSX (RFA, RFA.PR.E, RFA.PR.I) while Artis’s units will be delisted; governance structures for the combined entity have been established.
Key Details
- Structure of Arrangement
- RFA acquired all outstanding Artis common units, Series E preferred units and Series I preferred units.
- Artis common unitholders received one pre‑consolidation RFA common share per unit; those shares were later consolidated on a 1‑post‑share : 3‑pre‑shares basis.
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Series E and Series I preferred unitholders received one RFA preferred share for each respective Artis preferred unit; the preferred shares were not subject to consolidation.
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Post‑transaction Share Count (post‑consolidation)
- Common shares: 46,605,485
- Series E preferred shares: 2,820,409
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Series I preferred shares: 4,247,256
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TSX Listings
- RFA common shares to trade under ticker “RFA”.
- RFA Series E preferred shares to trade under ticker “RFA.PR.E”.
- RFA Series I preferred shares to trade under ticker “RFA.PR.I”.
- Expected market open for trading: on or about 2026‑02‑04.
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Artis units expected to be delisted at close of market on 2026‑02‑03.
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Governance
- New RFA board of directors (9 members): Ben Rodney (CEO), five directors nominated by former Artis trustees, and three current RFA directors.
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Management team includes: Ben Rodney (President & CEO), Samir Manji (Executive Chair), Jaclyn Koenig (CFO), Melody Lo (COO), Kara Watson (EVP, Legal & Corporate Secretary).
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Consideration Summary
- Artis common unitholders → 1 pre‑consolidation RFA common share per unit → later consolidated 3‑to‑1.
- Artis Series E preferred unitholders → 1 RFA Series E preferred share per unit (no consolidation).
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Artis Series I preferred unitholders → 1 RFA Series I preferred share per unit (no consolidation).
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Regulatory & Reporting
- Upon closing, RFA became a reporting issuer in all Canadian provinces and territories.
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Artis will cease to be a reporting issuer; an early‑warning report will be filed by RFA.
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Advisors
- Financial advisors: CIBC World Markets (Artis), BMO Capital Markets (RFA).
- Legal advisors: Norton Rose Fulbright Canada LLP (Artis), Borden Ladner Gervais LLP (RFA).
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Independent fairness opinion for Artis provided by Haywood Securities Inc.
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Strategic Rationale
- Combines RFA’s banking and mortgage businesses with Artis’s real‑estate portfolio, creating a diversified platform with multiple growth pathways, enhanced capital access, and potential for higher long‑term returns.
Notable Quotes
“We are very pleased to confirm the successful closing of this transformative transaction,” – Samir Manji, Executive Chair, RFA Financial.
“By combining RFA's expanding banking and mortgage businesses with Artis's established real estate platform, we have created a diversified company with multiple pathways for growth…” – Ben Rodney, President & CEO, RFA Financial.